Fuel for Thought: Seven Strategies to Surviving the Downturn

Seven Strategies to Surviving the Downturn

A Compendium to 11.21.08

Fuel for Thought Serieswww.SigmaGroup.com

Geoff Ramsey’s Digital Marketing Now: Seven Strategies to Geoff Ramsey’s Digital Marketing Now: Seven Strategies to Surviving the Downturn is available as download at: Surviving the Downturn is available as download at:

http://www.emarketer.com/7strategies.aspxhttp://www.emarketer.com/7strategies.aspx

It’s ugly out there…It’s ugly out there…

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53%53% of U.S. marketers expect of U.S. marketers expect reducedreduced ad ad budgetbudget over the next 6 over the next 6

months months (ANA)(ANA)

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31%31% say they’ve say they’ve alreadyalready cutcut back back (Oct ‘08 (Oct ‘08 MarketingProfss)MarketingProfss)

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85% will 85% will cutcut their traditional their traditional mediamedia budgetbudget in 2009 in 2009 (MarketingProfs)(MarketingProfs)

Signs of growth Signs of growth in…in…

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projected to grow by 8.9% in 2009(eMarkete

r)

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U.S. online ad spending

Over 70% of global marketing executives

today believe online will determine how major campaigns are

planned and executed (ANA Survey)

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Why Why onlineonline will weather the will weather the downturn downturn betterbetter than other than other

advertising advertising optionsoptions??

Greater measurability, accountability and less expensive than traditional channels

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More granular targeting and access to consumers at all stages of the buying cycle

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The Internet is interactive, allowing higher The Internet is interactive, allowing higher degrees of engagement with consumers degrees of engagement with consumers

Paying close attention to online conversations Paying close attention to online conversations gives marketers insights into consumer behavior, gives marketers insights into consumer behavior,

desires, feelings, problem issues, etc.desires, feelings, problem issues, etc.

What are those 7 strategies?What are those 7 strategies?

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Get with the Accountability Program

Strategy11

Now is the time to step up efforts to quantify and measure the value of marketing programsGeoff Ramsey, eMarketer

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Measure online branding efforts – Intergrating with search to get a more complete assessment

Break down silos – search/display ads, online/offline media and

channels

Build a sales impact model to better assess how online messages convert shoppers into buyers, both online and in stores

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Keep Doing Search

Strategy

It’s a necessity for marketers in a depressed

economy as consumers welcome search ads,

rather than view them as interruption or disruption.

Geoff Ramsey, eMarketer

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Source: http://www.emarketer.com/7strategies.aspx

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Search provides a highly measurable ROI

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Search garners click-throught

rates that exceed all other forms of

online advertising

Search offers the potential for immediate online sales as well as for offline sales at a

later timeImage: http://www.flickr.com/photos/28481088@N00/2096361609/ Source: http://www.emarketer.com/7strategies.aspx

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33Anti-SearchStrategy

Don’t ignore the power of branding online… brand advertising creates the

intent, and search helps you resolve the purchase.

Geoff Ramsey, eMarketer

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”Image: http://www.flickr.com/photos/bip/ Source: http://www.emarketer.com/7strategies.aspx

Atlas found a 22% lift in conversion rate when display Atlas found a 22% lift in conversion rate when display ads were combined with searchads were combined with search

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For retailers with an online and offline channel, 68% of the impact of display ads was found in the offline sales

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My expectation is we’ll see a lot more shopping around, a lot more research

[because of the recession], so there is an opportunity there to reach people where

they are doing their research online…Brand advertising and display advertising create the intent, and search helps you

resolve the purchase. Hal Varian, chief economist, Google,

TravelThink Conference, October 8, 2008

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In the increasingly advertising-filled online environment, you know that

you’re often exposed to more than one message from a marketer before you buy. You see a display ad one day, a

video ad the next day, and maybe the day after that you search for the

product and purchase. If the search ad is the only one getting the credit for the conversion, the marketer isn’t

getting the full story. Esco Strong, analyst, Atlas Institute,“Where Can You Find Your

Customer?,” Microsoft, 2007Image: http://www.flickr.com/photos/28481088@N00/ Source: http://www.emarketer.com/7strategies.aspx

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The Web is the best platform for getting consumers from awareness to transactionthe world has ever seen, yet few advertisers leverage the Web as a transaction platform.David Koretz, MediaPost’s Online Publishing Insider, October 16, 2008

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Measure and integrate metricsMeasure and integrate metrics

Use display/branding ads to drive online shoppingUse display/branding ads to drive online shopping

Focus on value messagesFocus on value messages

Consider good old-fashioned site sponsorships – they Consider good old-fashioned site sponsorships – they can be effective and efficient if placed on the right can be effective and efficient if placed on the right content sites and precisely targeted to reach your content sites and precisely targeted to reach your

prospects.prospects.

to

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Stay Close to CustomersStay Close to Customers

Strategy

When times are tough, marketers should make

every attempt to stay close to their core

customers. With nearly 70% of all adults online,

the Internet has reached the threshold of

becoming a mass medium .

Geoff Ramsey, eMarketer

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”Source: http://www.emarketer.com/7strategies.aspx

Source: http://www.emarketer.com/7strategies.aspx

Two things to consider…

EmailStill a great medium for

staying in touch. Keep email campaigns targeted and

personalized as a means to staying close to

customers.

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Social MediaWhere consumer

conversations are taking place – on blogs, consumer review sites, social portal sites and

real-time conversational applications

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Use blogs, social media and tools to

Look, Listen, Lounge and

Learn

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Notice what words and language consumers use and how they interact, influence and pass along information.

Listen how consumers talk about your product/service category.

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Observe if there are real or perceived problems relating to your product or customer service.

Unleash the wisdom of the consumer by incorporating it into your initiative.

Best practices for using Social Media…

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Join in the conversation. But

make sure you pick the right

community and that you are adding real

value

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Keep brand fans happy. Focus on

your brand enthusiasts

and let them “share the

love” with others

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Tap into coveted

influentials

Engender TrustEngender Trust

StrategyStrategy

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Trust is the currency of brands, and it has

never been harder to create or hold on to.

Geoff Ramsey, eMarketer”

“

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How do you engender trust

with consumers?

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Realize consumers

trust each other more

than they trust you.

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Don’t go dark on them – continue to market

and advertise.

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Make your product

and customer service as good as can be.

Emphasize listening

over loud speaking.

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Transparency = Trust

Adapt messages

to be more real – less

marketing talk

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Engage Prospects and Engage Prospects and Customers via VideoCustomers via Video

StrategyStrategy

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Source: http://www.emarketer.com/7strategies.aspx

Average consumer recall of an un-skippable ad online is 50%, versus 18% for a similar ad on broadcast television. Magid Associates, 2008 ”

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In 2008, 80% of Internet users viewed online video (equates to 154 million)

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Projected to Projected to increase to 167.5 increase to 167.5 million Americans million Americans in 2009, in 2009, representing 87% representing 87% of Internet users.of Internet users.

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Two basic strategies for engaging with

online video…

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Place video footage of your products on your Web site to provide a more visual experience (i.e., demo)

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Place video “ads” on video content sites, such as YouTube, Hulu, or better yet, smaller niche sites addressing your target customer.

StrategyStrategy77Image: http://www.flickr.com/photos/philmclean/81540329/ Source: http://www.emarketer.com/7strategies.aspx

: Test : Test Test Test TestTest

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It’s tough out there, but now is really a terrific time to experiment.

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Not on wacky, unproven tactics… but on practical, data-supported success

strategies that marketers are already deploying today.

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There is simply no excuse today not to be experimenting

constantly, relentlessly with digital media and applications.

Marketers can read all the research in the world, but if they don’t try a tactic themselves… they will never know if it can work for their brand.

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The opportunities are limited The opportunities are limited only by creativity and only by creativity and imagination.imagination.

– – Geoff RamseyGeoff Ramsey

Want more info?Contact:jkim@sigmagroup.comOr Visit:http://www.sigmagroup.com